It's certainly true that the US Government wants to encourage you to fit energy-efficient windows by giving you a 10% tax break for doing so up to a maximum of $500 per year. This specific tax credit is called the Existing Home Tax Credit for Fenestration and covers windows installed between 31st December 2005 and 1st January 2008. So there's still time for you to benefit.
The organization that rates the energy-saving capabilities of windows is the National Fenestration Rating Council (NFRC). Their measures are the U-Factor which rates how well the window retains heat in your house - the lower this rating, the better - and the Solar Heat Gain Coefficient which shows how well your windows keep your house cool - again, the lower, the better. In order to qualify for the above tax credit you need to install energy-efficient products rated by this organization. They'll all display NFRC stickers which you'll need to keep along with your receipts as proof of purchase.
What should you look for in a window, besides an Energy Star rating? The market supplies many choices, but here are some guidelines.
First, most insulating windows are made with two, or sometimes three, panes of glass. The manufacturer often fills the space between the panes with an insulating inert gas such as argon or krypton.
There's also a film or reflective metal coating that manufacturers can put on the glass which helps to achieve lower U-Factor ratings. Some treatments of this sort can even help to filter out damaging UV radiation. It's a good idea if you are installing a west-facing window to attempt to obtain glass that has a really low Solar Heat Gain Coefficient. This is useful because rooms with west-facing windows often have overheating problems in the afternoons. Your dealer should be able to help you with this.
Another very important consideration is the window seal. It's imperative that any window you are contemplating buying has a tight seal. You can check this by noting the resistence felt when opening and closing the window in the showroom. The higher the resistence, the better the seal.
So, although replacing those old, drafty windows may look to be an expensive proposition in the short-term, remember to factor in the government tax break of ten per cent and ten to twenty five per cent savings on energy costs, and they might not look quite so expensive after all.
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If you're looking for some energy conservation technique advice then Graham Tasker, the Webmaster of Green Home Website at www.greenhome.no1-source.com has plenty that you'll find interesting and informative.
Side Note: We Can All Be More Green
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